Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
We welcome comments via posts to this site. Please send inquiries via email to tally.wiener@thecomi.com.

Counter

Monday, July 27, 2015

Ukraine Avoids Default With $120 Million Interest Payment

Per www.globalinsolvency.com:

Mon., July 27, 2015

Ukraine
has staved off a default on its $70bn debt pile, rekindling hopes that
Kiev can cut a deal with creditors to restructure a substantial
proportion of its dues, the Financial Times reported. The
cash-strapped eastern European country, which is in the midst of a deep
recession and a separatist conflict against Russia-backed rebels, made a
$120m interest payment due on Friday as part of its ongoing battle to
convince creditors to write down the face value of their holdings. The
government originally hoped to strike an agreement to restructure
$15.3bn of debt before the summer. However months of negotiation failed
to produce a deal and, in May, Ukraine’s parliament adopted a law that
granted government the authority to halt debt repayments altogether.
“It’s a positive sign but I probably wouldn’t get too carried away,”
said Fyodor Bagnenko, a fixed income trader at Dragon Capital, which
forecasts that Ukraine and its creditors will eventually compromise on a
debt haircut of 20 per cent to 25 per cent.